IMF Mission Concludes Visit to El Salvador
IMF News, December 20, 2016
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Bibliographic details
- Published: December 20, 2016
Purpose and scope of the mission
- Press Release No. 16/574
- Mission dates: December 14 to 20, 2016
- Objective: assess the political support of the authorities and the parliamentary opposition for a policy agenda consistent with the recommendations of the 2016 Article IV Staff Report
- Team leader: Mr. Daniel Kanda
Key findings and assessments
- “Government officials, members of congress across the political spectrum, and private sector representatives expressed strong support for a potential Fund backed economic reform program, despite differences regarding the mix of revenue and expenditure measures that could underpin the needed fiscal adjustment.”
- Consensus view: a Fund program would help catalyze agreement on a policy package that would:
- support fiscal adjustment while protecting the most vulnerable
- boost financial sector soundness
- help establish conditions conducive for higher and more inclusive economic growth
- The government “continues to make progress on the technical preparations that would underpin this policy agenda.”
- The team “stressed the need for high-quality fiscal measures and higher transparency in government and public enterprises, complemented by policies aimed at boosting the resilience of the financial sector, creating a more attractive climate for investment and jobs, and strengthening the social safety net to protect the poor.”
- The IMF team expressed appreciation for “the frank and productive discussions and the warm hospitality of our Salvadoran counterparts.”
Policy recommendations and emphasis
- Adopt high-quality fiscal measures to underpin fiscal adjustment
- Increase transparency in government and public enterprises
- Implement policies to boost financial sector resilience
- Create a more attractive climate for investment and jobs
- Strengthen the social safety net to protect the poor
Stakeholder engagement during the visit
- Meetings held with:
- Vice-President Oscar Ortiz
- Technical Secretary Roberto Lorenzana
- Finance Minister Carlos Cáceres
- Economy Minister Tharsis Solomon López
- Minister of Health Violeta Menjivar
- Central Bank President Oscar Cabrera
- Leader of ARENA party Mauricio Interiano
- other senior government officials, members of congress from both major parties, and representatives of the private sector
Forward-looking statements
- The IMF team looks forward to continuing its engagement with all relevant stakeholders in the period ahead.
IMF Press Release No. 16/574 — December 20, 2016